Nvidia Shares Dip 13.6% from March Peak: Buying Opportunity for Investors ?

Nvidia Shares Dip 13.6% from March Peak: Buying Opportunity for Investors ?

VoM News Desk | March 13, 2024 | 10:33 PM IST | Breaking News | Follow on Google News

Nvidia Shares Dip 13.6% from March Peak: Buying Opportunity for Investors ? Image/Reuters

Nvidia Shares Dip 13.6% from March Peak: Buying Opportunity for Investors ?

Shares of chipmaking titan Nvidia have witnessed a notable decline of almost 14% this month, dipping from their March peak of $974 amidst a broader market pullback. On March 13, Nvidia shares traded 3.09% lower at $890.71 on the NYSE.

Divided Analyst Opinion

Market analysts are split on whether this presents a buying opportunity or marks the end of the rally for now. Cory Mitchell from Trading.biz emphasizes the significance of the current pullback, suggesting that if the price doesn’t rebound soon, it could signal a period of choppy trading or further decline. Despite this, Mitchell highlights Nvidia’s strong earnings growth potential, projected at 30% annually over the next five years.

Analyzing Stock Movement

Examining Nvidia’s historical stock movement reveals patterns. Pullbacks of less than 12% after a strong rally often lead to continued upward momentum. However, larger pullbacks indicate choppy trading or further declines. Recent history shows fluctuations: in late 2022, a rally of 57% was followed by a minor pullback of 11.28%, while subsequent pullbacks of over 12% led to choppier trading. The current 13.6% pullback suggests potential for continued decline or stagnant trading near the recent high of $974.

Conclusion

Nvidia’s stock movement reflects a nuanced picture. While short-term fluctuations may pose challenges, the company’s strong fundamentals underscore long-term growth potential. Investors must carefully monitor the stock’s behavior in the coming weeks to discern whether the current pullback signals a temporary setback or a more prolonged period of uncertainty.

VoM News Desk

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